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FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD

Year 2011, Volume: 3 Issue: 2, 83 - 93, 01.12.2011

Burcu Türkcan R. Fatih Saygılı

Abstract

The main purpose of this study is to detect the long-term relationship between foreign direct investment inflows and net exports in Turkey. The first section is devoted to the impact of FDI on net exports and recent developments relating to those variables in Turkey are briefly examined. In the second section, a literature survey is made to present empirical results for different countries. Finally, empirical analyses are conducted for Turkey by using a time series data for the post- 1980 period. The results reveal that there is no significant complementary relationship between FDI and net exports in Turkey but the main motive behind FDI inflows to Turkey is to gain access to local market rather than producing for foreign markets

Keywords

FDI inflows Net exports Cointegration test

References

  • Alguacil, Ma.T., Cuadros, A and Orts,V (2002), “Foreign Direct Investment, Exports and Domestic Performance in Mexico: A Causality Analysis”. Economics Letters. Vol. 77. pp. 371 – 376.
  • Alici, A.A. and Ucal, M.S (11-13 September 2003), “Foreign Direct Investment, Exports and Output Growth of Turkey: Causality Analysis”. The European Trade Study Group Fifth Annual Conference. Madrid.
  • Chaisrisawatsuk, S. and Chaisrisawatsuk, W (2007), “Imports, Exports and Foreign Direct Investment Interactions and Their Effects”, Asia-Pacific Research and Training Network on Trade Working Paper Series No. 45.
  • Erdilek, A (2005), “A Comparative Analysis of Inward and Outward FDI in Turkey”. A. (2005). “A Comparative Analysis of Inward and Outward FDI in Turkey”.İktisat, İşletme ve Finans Dergisi. No. 233.
  • Göver, Z.T (2005), “Doğrudan Yabancı Yatırımların Uluslararası Ticarete Etkileri: Türkiye Değerlendirmesi”. TC. Hazine Müsteşarlığı Ekonomik Araştırmalar Genel Müdürlüğü. Araştırma İnceleme Dizisi No. 40.
  • Hejazi, W. and Safarian, A.E (1999), “The Complementarity Between US Foreign Direct Investment Stock and Trade”. 1999 Annual Canadian Economics Association Meeting.
  • Hsiao, F.S.T. and Hsiao, M-C.W (2004), “FDI, Exports and GDP in East and Southeast Asia – Panel Data versus Time Series Causality Analysis”. Journal of Asian Eonomics. Vol. 17. Pp. 1082 – 1106.
  • Johansen, S (1988), “Statistical Analysis of Cointegrating Vectors”, Journal of Economic Dynamics and Control. Vol. 12. Pp. 231 – 254.
  • Karagoz, M. And Karagoz, K (2006), “Türk Ekonomisinde İhracat ve Doğrudan Yabancı Yatırım İlişkisi: Bir Zaman Serisi Analizi”. Ekonomik ve Sosyal Araştırmalar Dergisi. Vol. 3. Year. 2. No: 1. Pp: 117 – 126.
  • Kneller, R. and Pisu, M (2004), “Export-Oriented FDI in the UK”. Oxford Review of Economic Policy. Vol. 20. No.3.
  • Kumar, N (2001), “Infrastructure Availability, Foreign Direct Investment Inflows and Their Export – Orientation: A Cross – Country Exploration”. Research and Information System for Developing Countries Version 1.2.
  • Leichenko, R.M and Erickson, R.A (1997), “Foreign Direct Investment and State Export Performance”. Journal of Regional Science. Vol. 37. No. 2. Pp.307 – 329.
  • Liu, X., Wang, C. and Wei, Y (2001), “Causal Links Between Foreign Direct Investment and Trade in China”. China Economic Review. Vol.12. Issues 2-3. Pp. 190 – 202.
  • Mafusire, A (2001), “Export-led Growth and Foreign Direct Investment: The Zimbabwean Experience”. The University of Queensland School of Economics. Discussion Paper No.295.
  • Pain, N. and Wakelini, K (1997), “Export Performance and the Role of Foreign Direct Investment”. National Institute of Economic and Social Research & Maastricht Economic Research Institute on Innovation and Technology.
  • Rothmuller, L.M (2003), “Does FDI Matter For Trade in Brazil? An Application of the Gravity Model”. London School of Economics and Political Science. http://foreignaid.com/jde/submissions/Leandro%20Rothmuller.pdf. 15.03.2010].
  • Accessed: Sharma, K (2000), “Export Growth in India: Has FDI Played a Role?”. Yale University Economic Growth Center Discussion Paper No. 816.
  • Sun, H (2001), “Foreign Direct Investment and Regional Export Performance in China”. Journal of Regional Science. Vol. 41. No. 2. Pp. 317-336.
  • TCMB (2011), “Net Foreign Direct Investment Inflows as a Percentage of GDP”. http://www.tcmb.gov.tr. [Accessed: 30.06.2011].
  • TUIK (2011), “GDP” and “Foreign Trade by Years”. http://www.tuik.gov.tr. [Accessed: 30.06.2011].
  • Wilamoski, P.and Tinkler, S (1999), “The Trade Balance Effects of US Foreign Direct Investment in Mexico”. Atlantic Economic Journal. Vol. 27:1. pp. 24–37. World Bank (2011), “GDP”. World Development Indicators Online Database. http://data.worldbank.org. [Accessed: 30.06.2011].
  • WTO (1996), “Trade and Foreign Direct Investment”. WTO News: 1996 Press Releases. http://www.wto.org. [Accessed: 06.06.2010].
  • Zhang, K.H (2005), “How Does FDI Affect a Host Country’s Export Performance? The Case of China”. International Conference of WTO. China.
  • Zhang, K.H. and Song, S (2000), “Promoting Exports: The Role of Inward FDI in China”. China Economic Review. 11. Pp. 385 – 396.

Year 2011, Volume: 3 Issue: 2, 83 - 93, 01.12.2011

Burcu Türkcan R. Fatih Saygılı

Abstract

References

  • Alguacil, Ma.T., Cuadros, A and Orts,V (2002), “Foreign Direct Investment, Exports and Domestic Performance in Mexico: A Causality Analysis”. Economics Letters. Vol. 77. pp. 371 – 376.
  • Alici, A.A. and Ucal, M.S (11-13 September 2003), “Foreign Direct Investment, Exports and Output Growth of Turkey: Causality Analysis”. The European Trade Study Group Fifth Annual Conference. Madrid.
  • Chaisrisawatsuk, S. and Chaisrisawatsuk, W (2007), “Imports, Exports and Foreign Direct Investment Interactions and Their Effects”, Asia-Pacific Research and Training Network on Trade Working Paper Series No. 45.
  • Erdilek, A (2005), “A Comparative Analysis of Inward and Outward FDI in Turkey”. A. (2005). “A Comparative Analysis of Inward and Outward FDI in Turkey”.İktisat, İşletme ve Finans Dergisi. No. 233.
  • Göver, Z.T (2005), “Doğrudan Yabancı Yatırımların Uluslararası Ticarete Etkileri: Türkiye Değerlendirmesi”. TC. Hazine Müsteşarlığı Ekonomik Araştırmalar Genel Müdürlüğü. Araştırma İnceleme Dizisi No. 40.
  • Hejazi, W. and Safarian, A.E (1999), “The Complementarity Between US Foreign Direct Investment Stock and Trade”. 1999 Annual Canadian Economics Association Meeting.
  • Hsiao, F.S.T. and Hsiao, M-C.W (2004), “FDI, Exports and GDP in East and Southeast Asia – Panel Data versus Time Series Causality Analysis”. Journal of Asian Eonomics. Vol. 17. Pp. 1082 – 1106.
  • Johansen, S (1988), “Statistical Analysis of Cointegrating Vectors”, Journal of Economic Dynamics and Control. Vol. 12. Pp. 231 – 254.
  • Karagoz, M. And Karagoz, K (2006), “Türk Ekonomisinde İhracat ve Doğrudan Yabancı Yatırım İlişkisi: Bir Zaman Serisi Analizi”. Ekonomik ve Sosyal Araştırmalar Dergisi. Vol. 3. Year. 2. No: 1. Pp: 117 – 126.
  • Kneller, R. and Pisu, M (2004), “Export-Oriented FDI in the UK”. Oxford Review of Economic Policy. Vol. 20. No.3.
  • Kumar, N (2001), “Infrastructure Availability, Foreign Direct Investment Inflows and Their Export – Orientation: A Cross – Country Exploration”. Research and Information System for Developing Countries Version 1.2.
  • Leichenko, R.M and Erickson, R.A (1997), “Foreign Direct Investment and State Export Performance”. Journal of Regional Science. Vol. 37. No. 2. Pp.307 – 329.
  • Liu, X., Wang, C. and Wei, Y (2001), “Causal Links Between Foreign Direct Investment and Trade in China”. China Economic Review. Vol.12. Issues 2-3. Pp. 190 – 202.
  • Mafusire, A (2001), “Export-led Growth and Foreign Direct Investment: The Zimbabwean Experience”. The University of Queensland School of Economics. Discussion Paper No.295.
  • Pain, N. and Wakelini, K (1997), “Export Performance and the Role of Foreign Direct Investment”. National Institute of Economic and Social Research & Maastricht Economic Research Institute on Innovation and Technology.
  • Rothmuller, L.M (2003), “Does FDI Matter For Trade in Brazil? An Application of the Gravity Model”. London School of Economics and Political Science. http://foreignaid.com/jde/submissions/Leandro%20Rothmuller.pdf. 15.03.2010].
  • Accessed: Sharma, K (2000), “Export Growth in India: Has FDI Played a Role?”. Yale University Economic Growth Center Discussion Paper No. 816.
  • Sun, H (2001), “Foreign Direct Investment and Regional Export Performance in China”. Journal of Regional Science. Vol. 41. No. 2. Pp. 317-336.
  • TCMB (2011), “Net Foreign Direct Investment Inflows as a Percentage of GDP”. http://www.tcmb.gov.tr. [Accessed: 30.06.2011].
  • TUIK (2011), “GDP” and “Foreign Trade by Years”. http://www.tuik.gov.tr. [Accessed: 30.06.2011].
  • Wilamoski, P.and Tinkler, S (1999), “The Trade Balance Effects of US Foreign Direct Investment in Mexico”. Atlantic Economic Journal. Vol. 27:1. pp. 24–37. World Bank (2011), “GDP”. World Development Indicators Online Database. http://data.worldbank.org. [Accessed: 30.06.2011].
  • WTO (1996), “Trade and Foreign Direct Investment”. WTO News: 1996 Press Releases. http://www.wto.org. [Accessed: 06.06.2010].
  • Zhang, K.H (2005), “How Does FDI Affect a Host Country’s Export Performance? The Case of China”. International Conference of WTO. China.
  • Zhang, K.H. and Song, S (2000), “Promoting Exports: The Role of Inward FDI in China”. China Economic Review. 11. Pp. 385 – 396.
There are 24 citations in total.

Details

Other ID JA92AM69TT
Journal Section Articles
Authors

Burcu Türkcan This is me

R. Fatih Saygılı This is me

Publication Date December 1, 2011
Published in Issue Year 2011 Volume: 3 Issue: 2

Cite

APA Türkcan, B., & Saygılı, R. F. (2011). FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD. International Journal of Social Sciences and Humanity Studies, 3(2), 83-93.
AMA Türkcan B, Saygılı RF. FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD. IJ-SSHS. December 2011;3(2):83-93.
Chicago Türkcan, Burcu, and R. Fatih Saygılı. “FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD”. International Journal of Social Sciences and Humanity Studies 3, no. 2 (December 2011): 83-93.
EndNote Türkcan B, Saygılı RF (December 1, 2011) FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD. International Journal of Social Sciences and Humanity Studies 3 2 83–93.
IEEE B. Türkcan and R. F. Saygılı, “FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD”, IJ-SSHS, vol. 3, no. 2, pp. 83–93, 2011.
ISNAD Türkcan, Burcu - Saygılı, R. Fatih. “FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD”. International Journal of Social Sciences and Humanity Studies 3/2 (December 2011), 83-93.
JAMA Türkcan B, Saygılı RF. FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD. IJ-SSHS. 2011;3:83–93.
MLA Türkcan, Burcu and R. Fatih Saygılı. “FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD”. International Journal of Social Sciences and Humanity Studies, vol. 3, no. 2, 2011, pp. 83-93.
Vancouver Türkcan B, Saygılı RF. FOREIGN DIRECT INVESTMENT INFLOWS AND NET EXPORTS RELATIONSHIP IN TURKEY: AN ANALYSIS FOR THE POST 1980 PERIOD. IJ-SSHS. 2011;3(2):83-9.